NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND ACCOUNTING POLICIES--Active Assets Money Trust (the "Trust") is
registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end
management investment company. It was organized as a Massachusetts business trust on March 30, 1981 and
commenced operations on July 7, 1981.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS--Portfolio securities are valued at amortized cost, which approximates
B. ACCOUNTING FOR INVESTMENTS--Security transactions are accounted for on the trade date (date the
order to buy or sell is executed). In computing net investment income, the Trust amortizes any premiums and
discounts on securities owned. Realized gains and losses on security transactions are determined on the identified
C. FEDERAL INCOME TAX STATUS--It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its
shareholders. Accordingly, no federal income tax provision is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--Dividends and distributions to
shareholders are recorded by the Trust as of the close of the Trust's business day.
of the Trust of the collateral pledged for investments in repurchase agreements. It is the policy of the Trust to
value the underlying collateral daily on a mark-to-market basis to determine that the value, including accrued
interest, is at least equal to the repurchase price. In the event of default of the obligator to repurchase, the Trust
has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation.
2. INVESTMENT MANAGEMENT AGREEMENT--Pursuant to an Investment Management Agreement with
Dean Witter InterCapital Inc. (the "Investment Manager"), the Trust pays its Investment Manager a management
fee, calculated daily and payable monthly, by applying the