NOTE 1--Significant Accounting Policies:
The Dreyfus/Laurel Funds, Inc. (the "Company") 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 Dreyfus Money Market Reserves (the "Fund"). The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the distributor of the Fund's shares. The
Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration services, which in turn is a wholly-owned
subsidiary of FDI Holdings, Inc., the parent company of which is Boston Institutional Group, Inc.
On August 1, 1995, the Fund's Directors approved a change to the Fund's name, effective June 9, 1995, from
"Dreyfus/Laurel Prime Money Market Fund" to "Dreyfus Money Market Reserves."
The Fund is currently authorized to issue two classes of shares:
Investor shares and Class R shares. Investor shares are sold primarily to retail investors and bear a distribution
fee. Class R shares are sold primarily to bank trust departments and other financial service providers (including
Mellon Bank and its affiliates) acting on behalf of customers having a qualified trust or investment account or
relationship at such institution, and bear no distribution fee. Each class of shares has identical rights and privileges,
except with respect to the distribution fee and voting rights on matters affecting a single class. The Company has
the authority to issue 25 billion shares of capital stock with a par value of $.001.
Investment income, net of expenses (other than class specific expenses) and realized and unrealized gains and
losses are allocated daily to each class of shares based upon the relative proportion of net a