NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus International Equity Allocation Fund (the "Fund") is a series of The Dreyfus/Laurel Funds, Inc. (the
"Company") which is registered under the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company and operates as a series company currently offering sixteen series including the
Fund. The Fund's investment objective is to exceed the total return of the Morgan Stanley Capital International-
Europe Australia Far East (MSCI EAFE) Index. The Dreyfus Corporation ("Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon Bank").
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the Fund's shares. The Fund is
authorized to issue 60 million of $.001 par value Capital Stock. The Fund currently offers two classes of shares:
Institutional (24 million shares authorized) and Retail (36 million shares authorized). Retail shares are offered to
any investor and Institutional shares are offered only to clients of banks, securities brokers or dealers and other
financial institutions (collectively, Service Agents) that have entered into selling agreements with the Fund's
distributor. Other differences between the two classes include the services offered to and the expenses borne by
Investment income, net of expenses (other than class specific expenses), realized and unrealized gains and losses
are allocated daily to each class of shares based upon the relative proportion of net assets of each class.
The Fund's financial statements are prepared in accordance with generally accepted accounting principles which
may require the use of management estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (including options and financial futures) are valued at the last sales
price on the securities exchange on which such securities are primarily traded or at the las