DREYFUS DEBT & EQUITY FUNDS, N-30D, 2001-01-03

DREYFUS DEBT & EQUITY FUNDS
N-30D, 2001-01-03

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Dreyfus Premier

Core Bond Fund

ANNUAL REPORT October 31, 2000

(reg.tm)

The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.

* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value

Contents

THE FUND
--------------------------------------------------

2 Letter from the President

3 Discussion of Fund Performance

6 Fund Performance

8 Statement of Investments

16 Statement of Financial Futures

17 Statement of Assets and Liabilities

18 Statement of Operations

19 Statement of Changes in Net Assets

21 Financial Highlights

23 Notes to Financial Statements

31 Report of Independent Auditors

32 Important Tax Information

FOR MORE INFORMATION
---------------------------------------------------------------------------

Back Cover

The Fund

Dreyfus Premier

Core Bond Fund

LETTER FROM THE PRESIDENT

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Premier Core Bond Fund,
covering the 12-month period from November 1, 1999 through October 31, 2000.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with Michael Hoeh, portfolio
manager and a member of the Dreyfus Taxable Fixed Income Team that manages the
fund.

Bond prices were mixed over the 12-month reporting period, with prices of U.S.
Treasury securities generally ending the period higher while prices of
investment-grade corporate bonds generally ended the period at modestly lower
levels than where they began. More recently, most sectors of the U.S. bond
market have been affected by slowing economic growth. Additionally, the
moderating effects of the Federal Reserve Board's (the "Fed") interest-rate
hikes during the first half of 2000 helped the Fed to achieve its goal of
slowing the U.S. economy. Other factors such as higher energy prices and a weak
euro also served to slow economic growth.

In general, the overall investment environment that prevailed in the second half
of the 1990s had provided returns well above their historical averages,
establishing unrealistic expectations for some investors. We believe that as the
risks of the stock market have become more apparent recently, the relative
stability and income potential of bonds can make them an attractive investment
as part of a well-balanced portfolio.

For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620.

Thank you for investing in Dreyfus Premier Core Bond Fund.

Sincerely,

Stephen E. Canter

President and Chief Investment Officer

The Dreyfus Corporation

November 15, 2000

DISCUSSION OF FUND PERFORMANCE

Michael Hoeh, Portfolio Manager Dreyfus Taxable Fixed Income Team

How did Dreyfus Premier Core Bond Fund perform relative to its benchmark?

For the 12-month period ended October 31, 2000, the fund's Class A shares
produced a total return of 6.65% and income dividends of $0.9725 per share.
Since their inception on March 1, 2000, through October 31, 2000, the fund's
Class B shares produced a 5.07% total return and income dividends of $0.5697 per
share. Class C and Class R shares produced total returns of 4.52% and 5.39% and
income dividends per share of $0.5424 and $0.6317, respectively.(1) This
performance compares to the 7.33% total return provided by the fund's benchmark,
the Merrill Lynch Domestic Master Index.(2)

The Class A, B, C and R shares also produced 30-day SEC yields of 6.50%, 6.32%,
6.05% and 6.84%, respectively.

We are particularly pleased with the fund's performance relative to its peer
group. For the 12-month period ended October 31, 2000, the fund's Class A shares
ranked #84 out of 295 funds in the Lipper Intermediate Investment Grade Debt
Funds category.(3)

We attribute the fund's strong performance to our sector allocation and credit
quality strategies, which enabled us to avoid the brunt of the declines caused
by rising interest rates earlier in the period.

What is the fund's investment approach?

The fund seeks a high total return, which includes both capital appreciation and
current income. At least 65% of the fund must be invested in investment-grade
fixed-income securities, which include U.S. Treasury securities, U.S. Government
agency securities, corporate bonds, and mortgage- and asset-backed securities.
The remaining 35% may be invested in bonds of below investment-grade credit
quality, also known as "high yield" securities, convertible securities and
preferred stocks.

The Fund

DISCUSSION OF FUND PERFORMANCE (CONTINUED)

Our investment approach emphasizes:

* FUNDAMENTAL ECONOMIC ANALYSIS. Our review of U.S. economic conditions helps
us establish the portfolio' s average duration, which is a measure of
sensitivity to interest-rate changes. If interest rates appear to be rising,
we will generally reduce the fund's average duration to keep cash available
for the purchase of higher yielding securities as they become available. If
interest rates appear to be declining, we may increase the fund's average
duration to lock in prevailing yields.

* SECTOR ALLOCATION. We allocate assets among the various sectors of the
fixed-income marketplace according to their relative attractiveness under
prevailing and expected economic conditions.

* SECURITY SELECTION. We choose individual securities according to factors
that include their yields, prices, liquidity and the financial health of the
issuer.

What other factors influenced the fund's performance?

When the reporting period began, the U.S. economy was growing strongly, raising
concerns that long-dormant inflationary pressures might reemerge. In response,
the Federal Reserve Board (the "Fed") raised short-term interest rates four
times since November 1, 1999. However, by June 2000, signs had emerged that the
Fed's previous rate hikes were having the desired effect of slowing the economy,
suggesting that the Fed's restrictive monetary policies could be near an end.

The possibility of slower economic growth made us concerned that lower rated
bond issuers might have difficulty meeting their financial obligations. As a
result, we reduced our holdings of riskier high yield corporate bonds from about
20% of fund assets to approximately 10% of the fund. Instead, we emphasized very
high quality corporate bonds, inflation-indexed U.S. Treasury securities, and
mortgage-backed securities because of the combination of attractive yields and
sound credit quality they offered. As a result of these changes, the fund ended
the reporting period with an average credit rating of double-A, up significantly
from its prior average triple-B rating.

What is the fund's current strategy?

We continue to be concerned about potentially higher default rates among
corporate bonds as economic growth slows. Indeed, we have already experienced
deterioration in the credit quality of certain individual holdings, including
bonds issued by consumer retail businesses and broadcasting companies. We
reduced our position in retail because of wealth-effect concerns following the
major stock market decline. We have held on to our broadcasting bonds because we
believe that current concerns about the industry may be overblown.

Although we have continued to maintain the fund's high average credit quality,
we have begun to rebuild our holdings of corporate bonds from financial services
companies. That' s primarily because the Fed, in our opinion, is probably
finished with the current cycle of interest-rate hikes. We believe that
financial services companies may be in a good position to improve profitability
if interest rates moderate from current levels. However, we have avoided bonds
of industrial issuers, such as paper, chemicals, automobile and food businesses.
In our view, these companies' earnings may be hurt by higher oil prices, higher
labor costs and a declining euro. For many of the same reasons, we have also
generally avoided foreign bonds from both developed and emerging market
countries.

November 15, 2000

(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR
LESS THAN THEIR ORIGINAL COST.

(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MERRILL LYNCH DOMESTIC MASTER INDEX
IS AN UNMANAGED PERFORMANCE BENCHMARK COMPOSED OF U.S. TREASURY AND AGENCY, AND
MORTGAGE AND INVESTMENT-GRADE CORPORATE SECURITIES WITH MATURITIES GREATER THAN
OR EQUAL TO ONE YEAR.

(3) SOURCE: LIPPER INC.

The Fund

FUND PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus Premier Core Bond
Fund Class A shares and the Merrill Lynch Domestic Master index

((+)) SOURCE: LIPPER INC.

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.

THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES OF DREYFUS
PREMIER CORE BOND FUND ON 10/31/90 TO A $10,000 INVESTMENT MADE IN THE MERRILL
LYNCH DOMESTIC MASTER INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ARE REINVESTED. ON MARCH 1, 2000, THE FUND IMPLEMENTED A
MULTI-CLASS STRUCTURE. SHARES OUTSTANDING ON MARCH 1, 2000 WERE RECLASSIFIED AS
CLASS A SHARES. PERFORMANCE FOR CLASS B, CLASS C AND CLASS R SHARES WILL VARY
FROM THE PERFORMANCE OF CLASS A SHARES DUE TO DIFFERENCES IN CHARGES AND
EXPENSES.

THE FUND INVESTS PRIMARILY IN FIXED-INCOME SECURITIES OF DOMESTIC AND FOREIGN
ISSUERS. THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE
MAXIMUM INITIAL SALES CHARGE ON CLASS A SHARES AND ALL OTHER APPLICABLE FEES AND
EXPENSES. UNLIKE THE FUND, THE INDEX IS AN UNMANAGED PERFORMANCE BENCHMARK
COMPOSED OF U.S. GOVERNMENT, MORTGAGE AND BBB OR HIGHER RATED CORPORATE
SECURITIES WITH MATURITIES GREATER THAN OR EQUAL TO ONE YEAR; U.S. TREASURY
SECURITIES IN THE INDEX MUST HAVE PAR AMOUNTS OUTSTANDING GREATER THAN OR EQUAL
TO $1 BILLION AND CORPORATE AND GENERIC MORTGAGE-BACKED SECURITIES $100 MILLION
PER COUPON. THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.

Average Annual Total Returns AS OF 10/31/00

Inception From

Date 1 Year 5 Years 10 Years Inception
------------------------------------------------------------------------------------------------------------------------------------

CLASS A SHARES
WITH MAXIMUM SALES CHARGE (4.5%) 10/3/86 1.88% 6.18% 8.78% --
WITHOUT SALES CHARGE 10/3/86 6.65% 7.17% 9.29% --
------------------------------------------------------------------------------------------------------------------------------------

Aggregate Total Returns AS OF 10/31/00

Inception From

Date 1 Year 5 Years 10 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
WITH APPLICABLE REDEMPTION CHARGE ((+)) 3/1/00 -- -- -- 1.07%
WITHOUT REDEMPTION 3/1/00 -- -- -- 5.07%

CLASS C SHARES
WITH APPLICABLE REDEMPTION CHARGE ((+)(+)) 3/1/00 -- -- -- 3.52%
WITHOUT REDEMPTION 3/1/00 -- -- -- 4.52%

CLASS R SHARES 3/1/00 -- -- -- 5.39%

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.

((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%.
AFTER SIX YEARS, CLASS B SHARES CONVERT TO CLASS A SHARES.

((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF THIS PURCHASE.
</TABLE>

The Fund

STATEMENT OF INVESTMENTS

October 31, 2000

Principal

BONDS AND NOTES--95.2% Amount(a) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
AIRCRAFT & AEROSPACE--.5%

Pegasus Aviation Lease Securitization,

Asset-Backed Ctfs.,

Ser. 2000-1, Cl. A1, 7.245%, 2015 1,946,670 (b,c) 1,945,454

AIRLINES--3.3%

America West Airlines Pass-Through Trust,

Pass-Through Ctfs.,

Ser. 1997-1, Cl. C, 7.53%, 2004 6,511,626 6,391,064

US Airways Pass-Through Trust,

Pass-Through Ctfs.,

Ser. 2000-2G, Cl. G, 8.02%, 2019 6,777,000 6,777,000

13,168,064

ASSET-BACKED CTFS.--4.8%

Advanta Mortgage Loan Trust,

Ser. 2000-2, Cl. A6, 7.72%, 2015 5,700,000 5,792,625

Conseco Finance Securitizations,

Ser. 2000-1, Cl. A3, 7.3%, 2031 2,500,000 2,514,438

Fidelity Equipment Lease Trust,

Ser. 1999-2, Cl. A3, 6.96%, 2004 6,100,000 (b) 6,113,344

Inner Harbor CBO,

Ser. 1999-1, Cl. B2, 13.667%, 2012 2,000,000 (b) 1,991,875

The Money Store Home Equity Trust,

Ser. 1998-B, Cl. AF8, 6.11%, 2010 3,000,000 2,918,445

19,330,727

ASSET-BACKED CTFS./AUTOMOBILE RECEIVABLES--.8%

Flagship Auto Receivables Owner Trust,

Ser. 1999-2, Cl. A3, 6.835%, 2004 3,000,000 3,015,135

ASSET-BACKED CTFS./HOME EQUITY LOANS--.2%

GE Capital Mortgage Services:

Ser. 1999-21, Cl. B3, 6.75%, 2014 669,277 (b) 552,468

Ser. 1999-21, Cl. B4, 6.75%, 2014 250,377 (b) 177,768

730,236

AUTOMOTIVE--.5%

American Axle & Manufacturing,

Sr. Sub. Notes, 9.75%, 2009 2,383,000 2,138,743

BANKING--1.2%

Bank One Capital III,

Trust Originated Preferred Securities, 8.75%, 2030 4,870,000 4,725,838

BUILDING MATERIALS--.4%

ICF Kaiser International,

Sr. Sub. Notes, 13%, 2003 4,750,000 (d) 1,692,188

Principal

BONDS AND NOTES (CONTINUED) Amount(a) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION--1.4%

Adelphia Communications,

Sr. Notes, 10.875%, 2010 2,447,000 2,300,180

CSC Holdings,

Deb., 8.125%, 2009 3,516,000 3,427,485

5,727,665

COMMERCIAL MORTGAGE PASS-THROUGH CTFS.--5.0%

COMM,

Ser. 2000-FL2A, Cl. E, 7.61%, 2003 5,965,000 (b,c) 5,961,272

GMAC Commercial Mortgage Securities,

Ser. 2000-C2, Cl. A1, 7.273%, 2009 3,510,638 3,545,196

Morgan Stanley Dean Witter Capital I,

Ser. 2000-1345, Cl. B, 7.468%, 2010 6,500,000 (b) 6,615,781

Structured Asset Securities, REMIC,

Ser. 1996-CFL, Cl. H, 7.75%, 2028 4,750,000 (b) 3,650,361

19,772,610

CONSUMER--2.4%

Sleepmaster, Ser. B,

Sr. Sub. Notes, 11%, 2009 6,616,000 5,689,760

Unicredito Italia Capital Trust,

Trust Preferred Securities, 9.2%, 2049 4,069,000 (b,c) 4,060,366

9,750,126

ELECTRIC POWER--1.6%

Southern Energy,

Sr. Notes, 7.9%, 2009 6,617,000 (b) 6,343,506

FINANCE--1.4%

Bear Stearns,

Notes, 7.625%, 2009 1,518,000 1,479,057

General Electric Capital, Ser. A,

Notes, 6.8%, 2005 4,259,000 4,260,746

5,739,803

FOREIGN/GOVERNMENTAL--.6%

Government of New Zealand Bonds,

5.5%, 2003 NZD 1,667,000 651,350

Republic of Argentina:

Bonds, 10.25%, 2030 1,296,000 988,200

Deb., 11.25%, 2004 794,400 730,848

2,370,398

INDUSTRIAL--1.2%

Corning,

Notes, 6.25%, 2010 EUR 5,810,000 (b) 4,781,030

The Fund

STATEMENT OF INVESTMENTS (CONTINUED)

Principal

Neenah,

Ser. B, Sr. Sub. Notes, 11.125%, 2007 200,000 151,000

4,932,030

INSURANCE--2.2%

Everest Reinsurance Holdings,

Sr. Notes, 8.5%, 2005 3,000,000 3,106,347

MONY Group,

Sr. Notes, 8.35%, 2010 5,664,000 5,709,193

8,815,540

MEDIA/ENTERTAINMENT--1.2%

Clear Channel Communications,

Conv. Sub. Deb., 2.625%, 2003 4,399,000 4,899,386

OIL & GAS--2.3%

PEMEX Project Funding Master Trust,

Medium-Term Notes, 9.125%, 2010 2,463,000 (b) 2,395,268

Valero Energy,

Notes, 8.75%, 2030 5,871,000 6,148,922

Yosemite Securities Trust I,

Deb., 8.25%, 2004 716,000 (b) 725,533

9,269,723

REAL ESTATE--2.3%

Crescent Real Estate Equities,

Notes, 7%, 2002 9,950,000 9,269,639

RESIDENTIAL MORTGAGE PASS-THROUGH CTFS.--7.9%

Bank of America Mortgage Securities:

Ser. 1999-6, Cl. B4, 6.25%, 2014 567,003 (b) 473,848

Ser. 1999-10, Cl. B4, 6.5%, 2014 286,450 (b) 241,799

Ser. 1999-10, Cl. B5, 6.5%, 2014 143,701 (b) 106,825

Ser. 2000-6, Cl. B4, 7.75%, 2030 751,000 (b) 604,997

Ser. 2000-6, Cl. B6, 7.75%, 2030 600,631 (b) 168,177

Bear Stearns Mortgage Securities,

REMIC, Ser. 1995-1, Cl. 2B4, 7.4%, 2010 183,545 (b) 173,093

Chase Mortgage Finance Trust, REMIC:

Ser. 1994-E, Cl. B5, 6.25%, 2010 128,671 (b) 115,066

Ser. 1998-S5, Cl. B5, 6.5%, 2013 274,151 (b) 72,650

Ser. 1999-S3, Cl. B4, 6.25%, 2014 160,951 (b) 120,383

Ser. 1999-S6, Cl. B3, 6.25%, 2014 634,954 (b) 534,994

Ser. 1999-S6, Cl. B4, 6.25%, 2014 316,215 (b) 236,021

Ser. 1999-S7, Cl. B3, 6.25%, 2014 354,376 (b) 296,911

Ser. 1999-S13, Cl. B2, 6.5%, 2014 575,765 540,561

Ser. 2000-S2, Cl. B3, 7.5%, 2030 448,097 (b) 361,973

Ser. 2000-S5, Cl. B3, 7.5%, 2030 418,860 (b) 342,127

Principal

Countrywide Home Loans,

Ser. 2000-5, Cl. B3, 7.75%, 2030 4,125,000 (b) 3,331,202

GE Capital Mortgage Services, REMIC:

Ser. 1993-11, Cl. B4, 6%, 2008 108,900 (b) 102,142

Ser. 1993-15, Cl. B3, 6%, 2008 328,173 (b) 305,651

Ser. 1994-21, Cl. B4, 6.5%, 2009 215,208 (b) 193,638

Ser. 1994-22, Cl. B2, 6%, 2009 137,615 132,623

Ser. 1996-10, Cl. B3, 6.75%, 2011 446,246 (b) 408,925

Ser. 1996-12, Cl. B2, 7.25%, 2011 698,572 (b) 690,644

Ser. 1996-12, Cl. B3, 7.25%, 2011 299,043 (b) 276,482

Ser. 1996-14, Cl. 2B3, 7.25%, 2011 222,357 (b) 206,417

Ser. 1997-13, Cl. B2, 6.75%, 2012 879,225 848,072

Ser. 1998-1, Cl. B2, 6.75%, 2013 441,702 425,299

Ser. 1998-10, Cl. 2B4, 6.5%, 2013 203,316 (b) 158,460

Ser. 2000-5, Cl. B5, 7.25%, 2015 187,179 (b) 52,410

Ser. 2000-8, Cl. B4, 7.5%, 2015 247,870 (b) 186,965

MORSERV:

Ser. 1996-1, Cl. B2, 7%, 2011 658,620 653,311

Ser. 1996-1, Cl. B3, 7%, 2011 329,310 (b) 311,709

Norwest Asset Securities:

Ser. 1997-11, Cl. B3, 7%, 2027 727,634 (b) 635,426

Ser. 1997-15, Cl. B3, 6.75%, 2012 441,507 (b) 395,257

Ser. 1997-17, Cl. B5, 7.25%, 2027 1,019,197 (b) 304,060

Ser. 1997-20, Cl. B4, 6.75%, 2012 222,868 (b) 180,222

Ser. 1998-2, Cl. B3, 6.5%, 2028 485,795 404,369

Ser. 1998-11, Cl. B3, 6.5%, 2013 669,907 638,441

Ser. 1998-11, Cl. B4, 6.5%, 2013 803,710 (b) 699,123

Ser. 1998-13, Cl. B4, 6.25%, 2028 730,572 (b) 588,991

Ser. 1998-18, Cl. B4, 6.25%, 2028 854,150 (b) 691,424

Ser. 1999-19, Cl. B4, 6.25%, 2014 471,796 (b) 397,695

Ser. 1999-22, Cl. B5, 6.5%, 2014 285,405 (b) 199,427

Ser. 2000-1, Cl. B4, 7.25%, 2030 598,110 (b) 485,535

Ocwen Residential MBS,

Ser. 1998-R1, Cl. B1, 7%, 2040 2,878,124 (b) 2,655,070

PNC Mortgage Securities, REMIC:

Ser. 1998-2, Cl. III-B4, 6.75%, 2013 434,467 (b) 380,775

Ser. 1998-2, Cl. III-B5, 6.75%, 2013 347,574 (b) 274,814

Ser. 1998-2, Cl. IV-B4, 6.75%, 2027 256,544 (b) 225,053

Ser. 1998-2, Cl. IV-B5, 6.75%, 2027 256,544 (b) 178,846

Prudential Home Mortgage Securities, REMIC:

Ser. 1996-7, Cl. B2, 6.75%, 2011 608,111 594,069

Ser. 1996-7, Cl. B3, 6.75%, 2011 1,581,719 (b) 1,449,918

Ser. 1996-7, Cl. B4, 6.75%, 2011 729,418 (b) 626,597

The Fund

STATEMENT OF INVESTMENTS (CONTINUED)

Principal

Residential Accredit Loans,

Ser. 1997-QS6, Cl. B1, 7.5%, 2012 319,664 295,002

Residential Funding Mortgage Securities I, REMIC:

Ser. 1997-S19, Cl. B1, 6.5%, 2012 707,764 (b) 620,318

Ser. 1997-S19, Cl. B2, 6.5%, 2012 303,302 (b) 241,498

Ser. 1997-S21, Cl. B1, 6.5%, 2012 408,234 (b) 358,263

Ser. 1998-S14, Cl. B1, 6.5%, 2013 617,474 (b) 535,376

Ser. 1998-S22, Cl. B2, 6.5%, 2013 350,188 270,812

Ser. 1998-S30, Cl. M3, 6.5%, 2028 1,064,805 955,194

Ser. 1999-S23, Cl. B2, 7.25%, 2029 680,443 (b) 395,543

Ser. 1999-S23, Cl. B3, 7.25%, 2029 680,167 (b) 190,447

Ser. 2000-S7, Cl. B1, 8%, 2030 375,053 (b) 310,853

Ser. 2000-S7, Cl. B3, 8%, 2030 417,248 (b) 121,002

Structured Asset Securities, REMIC,

Ser. Greenpoint 1996-A:

Cl. B1, 8.35%, 2027 1,689,969 (c) 1,619,730

Cl. B2, 8.35%, 2027 675,616 (c) 689,129

Cl. B4, 8.35%, 2027 405,555 (b,c) 373,111

31,654,765

RETAIL--1.6%

Dresdner Funding Trust I,

Bonds, 8.151%, 2031 4,821,000 (b) 4,245,411

Saks,

Gtd. Sr. Notes, 7.375%, 2019 4,085,000 2,022,075

6,267,486

TELECOMMUNICATION--4.8%

Cable & Wireless Optus Finance Property,

Gtd. Notes, 8%, 2010 7,600,000 (b) 7,909,806

Marconi,

Bonds, 8.375%, 2030 10,370,000 10,020,013

Winstar Communications,

Sr. Notes, 12.75%, 2010 EUR 2,000,000 1,222,704

19,152,523

U. S. GOVERNMENTS--14.0%

U. S. Treasury Bonds:

6.125%, 8/15/2029 15,109,000 15,651,866

6.25%, 5/15/2030 14,551,000 15,503,508

12%, 8/15/2013 2,823,000 3,862,457

Principal

U. S. Treasury Inflation Protection Securities,

3.625%, 7/15/2002 6,230,000 (e) 6,731,642

U. S. Treasury Notes:

5.75%, 8/15/2010 3,036,000 3,034,087

6.5%, 10/15/2006 4,165,000 4,296,531

6.75%, 5/15/2005 6,487,000 6,727,214

55,807,305

U. S. GOVERNMENT AGENCIES--3.9%

Federal National Mortgage Association:

Medium-Term Notes, 6.5%, 7/10/2002 AUD 1,335,000 695,645

Notes, 6.75%, 8/15/2002 2,500,000 2,512,758

Notes, 7%, 7/15/2005 9,000,000 9,172,368

Notes, 7.125%, 6/15/2010 3,000,000 3,098,358

15,479,129

U. S. GOVERNMENT AGENCIES/MORTGAGE-BACKED--26.3%

Federal Home Loan Mortgage Corp.:

7.5% 16,100,000 (f) 16,094,848

6.625%, 8/15/2002 2,500,000 2,507,565

REMIC, Multiclass Mortgage Participation Ctfs.

(Interest Only Obligation),

Ser. 2048, Cl. PJ, 7%, 4/15/2028 2,732,514 (g) 1,037,372

Federal National Mortgage Association:

7.5% 14,760,000 (f) 14,755,277

REMIC Trust, Gtd. Pass-Through Ctfs.

(Collateralized by FNMA Pass-Through Ctfs.)

(Interest Only Obligation):

Ser. 1996-70, Cl. PL, 7%, 2/25/2026 11,120,669 (g) 2,395,622

Ser. 1997-56, Cl. PM, 7%, 6/18/2026 2,907,473 (g) 650,954

Ser. 1997-74, Cl. PK, 7%, 11/18/2027 4,593,642 (g) 1,540,306

Government National Mortgage Association I:

7.5%, 1/15/2002-7/15/2002 81,087 82,278

Construction Loan,

6.8%, 7/15/2001 12,694,825 12,436,867

Project Loan:

6.495%, 7/15/2030 10,002,410 9,483,535

6.5%, 9/15/2033 1,214,385 1,154,998

6.54%, 7/15/2033 14,907,184 14,192,106

Government National Mortgage Association II:

7.5% 12,440,000 (f) 12,436,019

The Fund

STATEMENT OF INVESTMENTS (CONTINUED)

Principal

Government National Mortgage Association II (continued):

8% 3,750,000 (f) 3,792,188

Adjustable Rate Mortgage:

5.5%, 4/20/2030 4,946,369 4,863,672

6%, 7/20/2030 4,977,469 4,911,362

6.5%, 7/20/2030 2,986,634 2,977,301

105,312,270

UTILITIES--1.6%

Calpine,

Sr. Notes, 8.625%, 2010 6,570,000 6,498,998

YANKEE--1.8%

HSBC Capital Funding, Ser. 2,

Preferred Securities, 10.176%, 2049 3,216,000 (b,c) 3,573,352

Pemex Finance,

Notes, Ser. 2000-1, Cl. A2, 7.8%, 2013 3,400,000 (b) 3,520,615

7,093,967

TOTAL BONDS AND NOTES

(cost $383,563,194) 380,903,254
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--.3% Shares Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
BROADCASTING--.3%

Spanish Broadcasting System, Cl. A 133,750 (b,h) 1,245,547

TELECOMMUNICATION--.0%

Comunicacion Celular (warrants) 2,500 (b,h) 37,813

TOTAL COMMON STOCKS

(cost $861,960) 1,283,360
-----------------------------------------------------------------------------------------------------------------------------------

PREFERRED STOCKS--2.2%
-----------------------------------------------------------------------------------------------------------------------------------

ENTERTAINMENT--1.8%

Paxson Communications,

Cum., $1,325 737 7,185,750

TELECOMMUNICATION--.4%

Global Crossing,

Cum. Conv., $17.50 11,265 1,819,298

TOTAL PREFERRED STOCKS

(cost $9,584,335) 9,005,048

Principal

SHORT-TERM INVESTMENTS--10.8% Amount(a) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------

COMMERCIAL PAPER--10.4%

Dow Chemical,

6.63%, 11/1/2000 15,005,000 15,005,000

Equilon Enterprises,

6.61%, 11/1/2000 11,400,000 11,400,000

Morgan (J. P.) & Co.,

6.63%, 11/1/2000 15,000,000 15,000,000

41,405,000

U. S. TREASURY BILLS--.4%

6.04%, 11/2/2000 527,000 (i) 526,910

5.95%, 11/24/2000 752,000 (i) 749,135

6.29%, 12/21/2000 527,000 (i) 522,357

1,798,402

TOTAL SHORT-TERM INVESTMENTS

(cost $43,203,451) 43,203,402
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $437,212,940) 108.5% 434,395,064

LIABILITIES, LESS CASH AND RECEIVABLES (8.5%) (34,176,518)

NET ASSETS 100.0% 400,218,546

(A) PRINCIPAL AMOUNT STATED IN U.S. DOLLARS UNLESS OTHERWISE NOTED.

AUD--AUSTRALIAN DOLLARS

EUR--EUROS

NZD--NEW ZEALAND DOLLARS

(B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT OCTOBER 31, 2000,
THESE SECURITIES AMOUNTED TO $89,434,723 OR 22.3% OF NET ASSETS.

(D) NON-INCOME PRODUCING--SECURITY IN DEFAULT.

(E) PRINCIPAL AMOUNT FOR ACCRUAL PURPOSES IS PERIODICALLY ADJUSTED BASED ON
CHANGES TO THE CONSUMER PRICE INDEX.

(F) PURCHASED ON A FORWARD COMMITMENT BASIS.

(G) NOTIONAL FACE AMOUNT SHOWN.

(H) NON-INCOME PRODUCING SECURITY.

(I) HELD BY THE BROKER AS COLLATERAL FOR OPEN FINANCIAL FUTURES POSITIONS.

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

The Fund

STATEMENT OF FINANCIAL FUTURES

October 31, 2000

Unrealized

Market Value Appreciation

Covered (Depreciation)

Contracts by Contracts ($) Expiration at 10/31/2000 ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL FUTURES LONG

U. S. Treasury 5 Year Notes 404 40,677,750 December 2000 (206,313)

U. S. Treasury 20 Year Bonds 35 3,494,531 December 2000 (33,906)

FINANCIAL FUTURES SHORT

U. S. Treasury 10 Year Notes 611 61,529,609 December 2000 86,078

(154,141)

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2000

Cost Value
--------------------------------------------------------------------------------
ASSETS ($):

Investments in securities--See Statement of
Investments 437,212,940 434,395,064

Cash 9,154,489

Receivable for investment securities sold 14,751,299

Dividends and interest receivable 5,442,585

Receivable for shares of Beneficial Interest subscribed 1,286,817

Paydowns receivable 131,803

Receivable for futures variation margin--Note 4(a) 98,380

Prepaid expenses and other assets 89,167

465,349,604
--------------------------------------------------------------------------------

LIABILITIES ($):

Due to The Dreyfus Corporation and affiliates 306,664

Payable for investment securities purchased 64,345,947

Payable for shares of Beneficial Interest redeemed 354,472

Accrued expenses 123,975

65,131,058
--------------------------------------------------------------------------------

NET ASSETS ($) 400,218,546
--------------------------------------------------------------------------------

COMPOSITION OF NET ASSETS ($):

Paid-in capital 408,761,541

Accumulated undistributed investment income--net 65,526

Accumulated net realized gain (loss) on investments and financial
futures (5,609,640)

Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions [including
($154,141) net unrealized (depreciation) on financial futures] (2,998,881)
--------------------------------------------------------------------------------

NET ASSETS ($) 400,218,546
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>

NET ASSET VALUE PER SHARE

Class A Class B Class C Class R
------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 386,546,907 9,841,638 3,828,946 1,055

Shares Outstanding 27,099,622 689,002 268,994 74
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 14.26 14.28 14.23 14.26

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

The Fund

STATEMENT OF OPERATIONS

Year Ended October 31, 2000

--------------------------------------------------------------------------------

INVESTMENT INCOME ($):

INCOME:

Interest Income 23,270,914

Cash dividends 1,672,234

TOTAL INCOME 24,943,148

EXPENSES:

Management fee--Note 3(a) 1,963,259

Shareholder servicing costs--Note 3(c) 1,094,882

Registration fees 77,170

Custodian fees--Note 3(c) 42,346

Professional fees 36,012

Prospectus and shareholders' reports 32,293

Interest expense--Note 2 27,191

Trustees' fees and expenses--Note 3(d) 24,507

Distribution fees--Note 3(b) 13,942

Miscellaneous 13,348

TOTAL EXPENSES 3,324,950

INVESTMENT INCOME--NET 21,618,198
--------------------------------------------------------------------------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):

Net realized gain (loss) on investments 4,129,395

Net realized gain (loss) on financial futures (1,775,613)

NET REALIZED GAIN (LOSS) 2,353,782

Net unrealized appreciation (depreciation) on investments
and foreign currency transactions [including ($130,578)
net unrealized (depreciation) on financial futures] (3,231,921)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (878,139)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 20,740,059

SEE NOTES TO FINANCIAL STATEMENTS.

STATEMENT OF CHANGES IN NET ASSETS

Year Ended October 31,
---------------------------------

2000(a,b) 1999
-------------------------------------------------------------------------------
OPERATIONS ($):

Investment income--net 21,618,198 18,782,368

Net realized gain (loss) on investments 2,353,782 (6,918,018)

Net unrealized appreciation (depreciation)
on investments (3,231,921) 5,353,806

NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 20,740,059 17,218,156
-------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):

Investment income--net:

Class A shares (22,004,412) (18,877,503)

Class B shares (101,699) --

Class C shares (36,849) --

Class R shares (45) --

TOTAL DIVIDENDS (22,143,005) (18,877,503)
------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):

Net proceeds from shares sold:

Class A shares 182,974,308 66,224,793

Class B shares 9,982,814 --

Class C shares 5,134,831 --

Class R shares 1,002 --

Dividends reinvested:

Class A shares 15,449,224 13,963,988

Class B shares 55,876 --

Class C shares 26,036 --

Class R shares 45 --

Cost of shares redeemed:

Class A shares (85,637,789) (86,749,648)

Class B shares (163,980) --

Class C shares (1,316,786) --

INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 126,505,581 (6,560,867)

TOTAL INCREASE (DECREASE) IN NET ASSETS 125,102,635 (8,220,214)
-------------------------------------------------------------------------------
NET ASSETS ($):

Beginning of Period 275,115,911 283,336,125

END OF PERIOD 400,218,546 275,115,911

Undistributed investment income--net 65,526 286,646

(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000,
FOR CLASS B, CLASS C AND CLASS R SHARES.

(B) ON MARCH 1, 2000, OUTSTANDING SHARES WERE RECLASSIFIED AS CLASS A SHARES.

SEE NOTES TO FINANCIAL STATEMENTS.

The Fund

STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)

Year Ended October 31,
---------------------------------

2000(a,b) 1999
--------------------------------------------------------------------------------

CAPITAL SHARE TRANSACTIONS:

CLASS A(C)

Shares sold 12,785,953 4,617,771

Shares issued for dividends reinvested 1,081,570 971,101

Shares redeemed (5,996,065) (6,036,959)

NET INCREASE (DECREASE) IN SHARES OUTSTANDING 7,871,458 (448,087)
--------------------------------------------------------------------------------

CLASS B(C)

Shares sold 696,548 --

Shares issued for dividends reinvested 3,897 --

Shares redeemed (11,443) --

NET INCREASE (DECREASE) IN SHARES OUTSTANDING 689,002 --
--------------------------------------------------------------------------------

CLASS C

Shares sold 359,151 --

Shares issued for dividends reinvested 1,822 --

Shares redeemed (91,979) --

NET INCREASE (DECREASE) IN SHARES OUTSTANDING 268,994 --
--------------------------------------------------------------------------------

CLASS R

Shares sold 71 --

Shares issued for dividends reinvested 3 --

NET INCREASE (DECREASE) IN SHARES OUTSTANDING 74 --

(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000,
FOR CLASS B, CLASS C AND CLASS R SHARES.

(B) ON MARCH 1, 2000, OUTSTANDING SHARES WERE RECLASSIFIED AS CLASS A SHARES.

(C) DURING THE PERIOD ENDED OCTOBER 31, 2000, 13,857 CLASS B SHARES
REPRESENTING $276,316 WERE AUTOMATICALLY CONVERTED TO 13,304 CLASS A SHARES.

SEE NOTES TO FINANCIAL STATEMENTS.

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.

Year Ended October 31,
-------------------------------------------------------------------

CLASS A SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------

PER SHARE DATA ($):

Net asset value, beginning of period 14.31 14.40 14.86 14.24 14.22

Investment Operations:

Investment income--net .94 .98 1.01 1.05 .98

Net realized and unrealized gain (loss)
on investments (.02) (.09) (.45) .59 .02

Total from Investment Operations .92 .89 .56 1.64 1.00

Distributions:

Dividends from investment income--net (.97) (.98) (1.02) (1.02) (.98)

Net asset value, end of period 14.26 14.31 14.40 14.86 14.24
------------------------------------------------------------------------------------------------------------------------------------

TOTAL RETURN (%) 6.65(a) 6.38 3.74 11.94 7.27
------------------------------------------------------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA (%):

Ratio of operating expenses to
average net assets 1.00 1.04 1.02 1.03 1.04

Ratio of interest expense to
average net assets .01 .14 .03 .06 .02

Ratio of net investment income
to average net assets 6.60 6.80 6.76 7.25 6.89

Portfolio Turnover Rate 576.17 284.63 313.40 347.68 214.55
------------------------------------------------------------------------------------------------------------------------------------

Net Assets, end of period ($ x 1,000) 386,547 275,116 283,336 275,518 294,911

(A) EXCLUSIVE OF SALES CHARGE.

SEE NOTES TO FINANCIAL STATEMENTS.

The Fund

FINANCIAL HIGHLIGHTS (CONTINUED)

Period Ended October 31, 2000(a)
------------------------------------------

Class B Class C Class R
------------------------------------------------------------------------------------------------------------------------------------

PER SHARE DATA ($):

Net asset value, beginning of period 14.14 14.14 14.14

Investment Operations:

Investment income--net .57 .54 .62

Net realized and unrealized gain (loss)
on investments .14 .09 .13

Total from Investment Operations .71 .63 .75

Distributions:

Dividends from investment income--net (.57) (.54) (.63)

Net asset value, end of period 14.28 14.23 14.26
------------------------------------------------------------------------------------------------------------------------------------

TOTAL RETURN (%) (B) 7.55(c) 6.73(c) 8.03
------------------------------------------------------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA (%):

Ratio of expenses to average net assets (b) 1.50 1.69 2.85

Ratio of net investment income
to average net assets (b) 5.61 5.11 6.45

Portfolio Turnover Rate 576.17 576.17 576.17
------------------------------------------------------------------------------------------------------------------------------------

Net Assets, end of period ($ x 1,000) 9,842 3,829 1

(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000.

(B) ANNUALIZED.

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

NOTES TO FINANCIAL STATEMENTS

NOTE 1--Significant Accounting Policies:

Dreyfus Premier Core Bond Fund (the "fund") is a separate diversified series of
Dreyfus Debt and Equity Funds (the "Company") which is registered under the
Investment Company Act of 1940, as amended (the "Act" ), as an open-end
management investment company and operates as a series company currently
offering two series, including the fund. The fund's investment objective is to
maximize total return, consisting of capital appreciation and current income.
The Dreyfus Corporation (the "Manager") serves as the fund's investment adviser.
The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon"), which is a
wholly-owned subsidiary of Mellon Financial Corporation.

On February 9, 2000, the Company's Board of Trustees approved, effective March
1, 2000, a change of the fund's name from "Dreyfus Core Bond Fund" to "Dreyfus
Premier Core Bond Fund," coinciding with the fund implementing a multiple class
structure. Shares outstanding on March 1, 2000, were reclassified as Class A
shares and the fund added Class B, Class C and Class R shares.

Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue an unlimited number of $.001 par value shares of
Beneficial Interest in the following classes of shares: Class A, Class B, Class
C and Class R shares. Class A shares are subject to a sales charge imposed at
the time of purchase, Class B shares are subject to a contingent deferred sales
charge (" CDSC" ) imposed on Class B share redemptions made within six years of
purchase (Class B shares automatically convert to Class A shares after six
years) , Class C shares are subject to a CDSC imposed on Class C shares redeemed
within one year of purchase and Class R shares are sold at net asset value per
share only to institutional investors. Other differences between the classes
include the services offered to and the expenses borne by each class and certain
voting rights.

The Fund

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Company accounts separately for the assets, liabilities and operations of
each series. 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 accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.

(a) Portfolio valuation: Investments in securities (excluding short-term
investments, other than U.S. Treasury Bills, and financial futures) are valued
each business day by an independent pricing service ("Service") approved by the
Board of Trustees. 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 prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by the
Service based upon its evaluation of the market for such securities). Other
investments (which constitute a majority of the portfolio securities) are
carried at fair value as determined by the Service, based on methods which
include consideration of: yields or prices of securities of comparable quality,
coupon, maturity and type; indications as to values from dealers; and general
market conditions. Securities for which there are no such valuations are valued
at fair value as determined in good faith under the direction of the Board of
Trustees. Short-term investments, excluding U.S. Treasury Bills, are carried at
amortized cost, which approximates value. Financial futures are valued at the
last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market on
each business day. Investments denominated in foreign currencies are translated
to U.S. dollars at the prevailing rates of exchange.

(b) Foreign currency transactions: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in the market prices of
securities held. Such fluctuations are included

with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amount of
dividends, interest and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities at fiscal year end,
resulting from changes in exchange rates. Such gains and losses are included
with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund receives net
earnings credits based on available cash balances left on deposit.

In November 2000 the American Institute of Certified Public Accountants (AICPA)
issued a revised version of the AICPA Audit and Accounting Guide for Investment
Companies (the Guide) . The revised version of the Guide is effective for
financial statements issued for fiscal years beginning after December 15, 2000.
One of the new provisions in the Guide requires investment companies to amortize
premiums on fixed income securities which the fund does not currently do. Upon
adoption, the fund will be required to record a cumulative effect adjustment to
conform with accounting principles generally accepted in the United States. The
effect of this adjustment will be to decrease net investment income with an
offsetting increase to unrealized appreciation (depreciation) on securities.
This adjustment will therefore, have no effect on the net assets of the fund. At
this time, the fund has not completed its analysis of the impact of this
accounting change.

The Fund

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(d) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.

(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.

The fund has an unused capital loss carryover of approximately $5,368,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 2000. If not
applied, the carryover expires in fiscal 2007.

During the period ended October 31, 2000, as a result of permanent book to tax
differences, the fund increased accumulated undistributed investment income-net
by $303,687 and decreased accumulated net realized gain (loss) on investments by
the same amount. Net assets were not effected by this reclassification.

NOTE 2--Bank Lines of Credit:

The fund may borrow up to $20 million for leveraging purposes under a short-term
unsecured line of credit and participates with other Dreyfus-managed funds in a
$100 million unsecured line of credit primarily to be utilized for temporary or
emergency purposes, including the financing of redemptions. Interest is charged
to the fund at rates which are related to the Federal Funds rate in effect at
the time of borrowings.

The average daily amount of borrowings outstanding under the leveraging
arrangement during the period ended October 31, 2000 was approximately $463,700,
with a related weighted average annualized interest rate of 5.86%.

NOTE 3--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .60 of 1% of the value of the fund's average
daily net assets and is payable monthly.

DSC retained $8,956 during the period ended October 31, 2000 from commissions
earned on sales of the fund's shares.

(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the distributor for distributing
their shares at an annual rate of .50 of 1% of the value of the average daily
net assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended October 31, 2000, Class B and
Class C shares were charged $8,763 and $5,179, respectively, pursuant to the
Plan, all of which was paid to DSC.

(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the distributor at an annual rate of .25 of 1% of the value of their average
daily net assets for the provision of certain services. The services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The distributor determines the amounts to be paid to Service
Agents. During the The Fund

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

period ended October 31, 2000, Class A, Class B and Class C shares were charged
$811,915, $4,382 and $1,726, respectively, pursuant to the Shareholder Services
Plan, of which $567,023, $4,382 and $1,726 for Class A, Class B and Class C
shares, respectively, were paid to DSC.

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 2000, the fund was charged $196,349 pursuant to the transfer
agency agreement.

The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended October 31, 2000, the fund was
charged $42,346 pursuant to the custody agreement.

(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective August 2, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $45,000 and an attendance fee of $4,000 for each meeting attended
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to August 2, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the fund an annual fee
of $2,500 and an attendance fee of $500 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the Company's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.

NOTE 4--Securities Transactions:

(a) The aggregate amount of purchases and sales (including paydowns) of
investment securities, excluding short-term securities, financial futures and
forward currency exchange contracts, during the period ended October 31, 2000,
amounted to $2,149,485,221 and $2,064,898,771, respectively.

The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the fund would incur a loss if the
value of the contract increases between the date the forward contract is opened
and the date the forward contract is closed. The fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchases
of forward currency exchange contracts, the fund would incur a loss if the value
of the contract decreases between the date the forward contract is opened and
the date the forward contract is closed. The fund realizes a gain if the value
of the contract increases between those dates. The fund is also exposed to
credit risk associated with counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gain on
each open contract. At October 31, 2000, there were no forward currency exchange
contracts outstanding.

The fund may invest in financial futures contracts in order to gain exposure to
or protect against changes in the market. The fund is exposed to market risk as
a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the fund to "mark to market" on a daily
basis, which reflects the change in market value of the contracts at the close
of each day' s trading. Accordingly, variation margin payments are received or
made to reflect daily unrealized gains or losses. When the contracts are closed,
the fund recognizes a realized gain or loss. These investments require initial
margin deposits with a custodian, which consist of cash or cash equivalents, up
to approximately 10% of the contract amount. The amount of these deposits is
determined by the exchange or Board of Trade on which the contract is traded and
is subject to change. Contracts open at October 31, 2000, are set forth in the
Statement of Financial Futures.

The Fund

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(b) At October 31, 2000, accumulated net unrealized depreciation on investments
and financial futures was $2,972,017, consisting of $6,482,313 gross unrealized
appreciation and $9,454,330 gross unrealized depreciation.

At October 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments)

REPORT OF INDEPENDENT AUDITORS

Shareholders and Board of Trustees Dreyfus Premier Core Bond Fund

We have audited the accompanying statement of assets and liabilities, including
the statements of investments and financial futures, of Dreyfus Premier Core
Bond Fund (one of the funds constituting Dreyfus Debt and Equity Funds) as of
October 31, 2000, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and financial highlights for each of the years indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of October
31, 2000 and confirmation of securities not held by the custodian by
correspondence with others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Core Bond Fund at October 31, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the indicated years, in conformity with accounting principles generally accepted
in the United States.

/s/Ernst & Young, LLP

New York, New York

December 12, 2000

The Fund

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with Federal tax law, the fund hereby designates 7.76% of the
ordinary dividends paid during the fiscal year ended October 31, 2000 as
qualifying for the corporate dividends received deduction. Shareholders will
receive notification in January 2001 of the percentage applicable to the
preparation of their 2000 income tax returns.

For More Information

Dreyfus Premier Core Bond Fund

200 Park Avenue

New York, NY 10166

Manager

The Dreyfus Corporation

200 Park Avenue

New York, NY 10166

Custodian

Mellon Bank, N.A.

One Mellon Bank Center

Pittsburgh, PA 15258

Transfer Agent & Dividend Disbursing Agent

Dreyfus Transfer, Inc.

P.O. Box 9671

Providence, RI 02940

Distributor

Dreyfus Service Corporation

200 Park Avenue

New York, NY 10166

To obtain information:

BY TELEPHONE Call your financial representative or 1-800-554-4611

BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144