NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Investment Grade Bond Funds, Inc. (the "Company") is registered under the Investment Company Act
of 1940 ("Act") as an open-end management investment company and operates as a series company currently
offering two funds, including Dreyfus Short Term Income Fund (the "Fund"). The Fund is a non-diversified series.
The Fund's investment objective is to provide investors with as high a level of current income as is consistent with
the preservation of capital. The Dreyfus Corporation ("Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon"). Premier Mutual Fund Services, Inc. (the
"Distributor") acts as the distributor of the Fund's shares, which are sold to the public without a sales charge.
On August 24, 1995, the Company's Board of Directors approved a change of the Company's name, effective
November 8, 1995, from "Dreyfus Short-Term Income Fund, Inc." to "Dreyfus Investment Grade Bond Funds,
Inc." and to rename the existing Fund Dreyfus Short Term Income Fund.
The Company accounts separately for the assets, liabilities and operations of each fund. Expenses directly
attributable to each series are charged to that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
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: The Fund's investments (excluding short-term investments and U.S.
Government obligations) are valued each business day by an independent pricing service ("Service") approved by
the Board of Directors. Investments for which quoted bid prices are readily available and are representative of
the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid pri