Final answer:
Fully depreciated delivery trucks can indeed continue to produce income for a company, as depreciation only affects book value and not the functional value or utility of the asset.
Step-by-step explanation:
The statement that Head Company's 10 delivery trucks that are fully depreciated can still be used to produce additional income for the company even though no more cost remains to be allocated to accounting periods is True. Depreciation is an accounting method to allocate the cost of a tangible asset over its useful life.
Once an asset is fully depreciated, it means that its book value is reduced to zero, but it does not mean that the asset cannot generate revenue. The trucks can continue to provide services, contributing to the company's income streams.
Even though the delivery trucks of Head Company are fully depreciated and no more cost remains to be allocated to accounting periods, they can still be used to produce additional income for the company.
Fully depreciated trucks can continue to generate revenue by providing transportation services or being sold to other companies. While the accounting value of the trucks may be zero, their economic value and ability to generate income can still remain.