Final answer:
The claim is false; partnerships using the accrual method must report income for tax purposes when it is earned according to IRS rules, which can differ from when it is reported on financial statements.
Step-by-step explanation:
The statement that if a partnership uses the accrual method of accounting its income must be reported no later than the date that income would be reported on the partnership's applicable financial statement is false. According to the Internal Revenue Service (IRS), for tax purposes, partnerships using the accrual method must report income when it is earned, which is not necessarily when it is reported on financial statements. The requirement for tax reporting is based on tax regulations, which may differ from the rules governing the preparation of financial statements. While financial statements follow generally accepted accounting principles (GAAP), tax income reporting is governed by the Internal Revenue Code (IRC).