find two articles that discuss financial ratio analysis.n at least 50 words Identify two advantages and two disadvantages to using ratios in financial analysis. Be sure to cite your sources using APA format.

Effects of Inflation Accounting on Financial Ratios: An Empirical Analysis of Non-Financial Firms Listed on Istanbul Stock Exchange Nalan Akdogan*, Rafet Aktas** and Seyfettin Unal*** The study analyzes the effects of recently introduced practice of inflation accounting in Turkey. Despite a relatively long history of discussions on the subject, inflation accounting was adapted in the Turkish accounting practice only recently. Therefore, this created an opportunity to examine the results of implementation and to make meaningful comparisons between historical and inflation-adjusted financial statements of firms. An analysis of t-test on the means of financial ratios has been conducted on non-financial firms listed on Istanbul Stock Exchange (ISE). The results reveal that a statistically significant change for the whole sample occurs only on Total Assets Turnover (TAT). Regarding the industry-specific outcomes, significant changes are observed in non-metallic mineral products industry for total assets turnover and debt ratio. On the whole, the study provides useful insights from the industrial point of view and carries important implications for firms from different industries, as well as financial analysts. Introduction The users of financial information, such as current and potential investors, creditors, lenders, suppliers, customers, employees, government authorities and public, need relevant and reliable information about the financial position, performance and changes in the financial position of firms for making economic decisions. Inflation, on the other hand, distorts financial information by creating an impact on the firm's operational and financial results. In a hyperinflationary economy, reporting of operating results and financial position without restatement is misleading and thus is not useful (International Accounting Standards 29, code 2). Therefore, it is necessary that financial statements reflect the true picture and are free from the negative effects of inflation. Starting in the first half of the 1970s, a continuous rise in oil prices has generated interest towards inflation accounting. The issue quickly caught the attention of a number of countries and many of its aspects have been examined by officials, academia and accounting professionals. * Professor, Baskent University, Turkey. E-mail: nalanakdogan@gmail.com ** Assistant Professor, Dumlupinar University, Turkey. E-mail: rafetaktas@gmail.com *** Assistant Professor, Dumlupinar University, Turkey. E-mail: sunal@dumlupinar.edu.tr 2009 The Icfai Accounting on All Rights Reserved. Effects of InflationUniversity Press.Financial Ratios: An Empirical Analysis of Non-Financial Firms Listed on Istanbul Stock Exchange 47 All these parties strove hard for finding better ways to deal with inflation matters. Despite early works, until the World War I, major accomplishments on the subject have been possible only from the 1970s. Even though inflation accounting has long been debated, a necessary attention is avoided to provide its effects on financial statements of businesses. Hence, this study is conducted to present empirical evidence on the results of inflation accounting practice recently applied in Turkey. The analysis performed in this study is expected to provide a broad range of financial information to users with meaningful results. Particularly, the study carries important implications for firms from different industries, as well as financial analysts. Among others, these messages are especially in the interest of firms conducting businesses in countries faced with hyperinflation. The study is organized as follows: after the introduction, inflation accounting practices worldwide are discussed. After a brief review of Turkey's inflation accounting practice in the past, the current Turkish practice is presented. This includes data, methodology and findings. Next, an empirical analysis on the effects of recent inflation accounting experience is presented. Finally, the study concludes. Review of Literature In order for accounting to function properly and to provide users in firms with necessary information of their particular interest, such inputs need to be true and reliable. In case the conventional accounting practice supplies misleading information, it is likely that this produces consequences, such as wrong decision-making of firm management, paying too much in taxes, facing unions demanding high wages due to nominal profit levels, unrealistic expectations of shareholders about the firm, etc. (Baxter, 1975, p. 13). Therefore, during the periods of high inflation, depending on conventional accounting wisdom, may result in firm's financial information losing its meaning and creation of unrealistic expectations among information users (Coopers and Lybrand, 1975, pp. 28-33). The ongoing rise of costs and prices worldwide, since the 1970s, has catalyzed the need for inflation accounting. In many countries, while officials take measures to lessen the effects of inflation, academia and accounting professionals search for better ways for firms to deal with inflation and for methods in rearranging accounting systems to absorb the effects of inflation. In other words, now-a-days, efforts are put toward to minimize the problems created by inflation on businesses and also provide firms with an environment that allows them to conduct their business activities normally (Isbiter, 1977, p. 7). Although there had been studies on how to protect businesses from the negative consequences of price movements since the World War I, intensive works to carry these steps into practice started only in the 1970s. For this, committees have been formed and results of these committees' works have been published in reports. In addition, several countries published reports of their experiences, as well as covered the issue in their accounting standards in the 1980s (Scapens, 1977, p. 8). 48 The Icfai University Journal of Accounting Research, Vol. VIII, No. 2, 2009 The issue of general price level accounting has been studied by research groups in British and American accounting institutions since 1960 (Research Foundation of the Institute of Chartered Accountants, 1968). These institutions have published the results of their studies between the period 1969-74. They have also directed their members to restate their financial reports in accordance with the general price level and report the adjusted figures, along with historical cost figures (Australian Accounting Standards Committee, 1974). Nevertheless, because of growing interest in current value accounting after 1975, this practice came to a halt and dropped off from several countries' accounting standards (The Institute of Chartered Accountants in England and Wales, 1978). During the 1990s, combined methods were favored. Hence, current value and general price level accountings were concurrently suggested. In a number of countries, intensive studies have been carried out on inflation accounting. These countries have also formed committees to deal with the subject. Especially after inflation levels saw double digits in industrialized economies during the 1970s, work on the issue speeded up and the concept of 'inflation accounting' came into existence. When looking at the countries where the issue of inflation accounting is most intensively discussed, Britain is considered to be on the top of the list. The country began inflation accounting practice, first with the report known as ED 8, in 1973. Britain chose 'Current Cost Accounting' method for inflation accounting. The method was practised by firms on voluntary basis until 1988. In France, a committee headed by M Delmas Masalet presented a report in November 1976, requiring firms to publish their financial reports in accordance with general price level accounting, in addition to historical costs of the figures. Therefore, as opposed to other industrialized countries, France chose general price level accounting. Because the inflation level was low in Germany, interest in inflation accounting also remained low. Nonetheless, German accounting institute's report in November 1975 required that price changes be presented to the management as additional information. Works and practices regarding inflation accounting have also been taken up in the US. Accounting Principles Board's Manifesto No. 3 in 1969 announced that firms are advised to present financial reports restated by general price level changes, along with historical cost figures. A similar advice was also given by the Financial Accounting Standards Board (FASB) in December 1974. Another guideline about inflation accounting practice in the US was also presented by Securities and Exchange Commission (SEC) in March 1976. In Canada, the Canadian Institute of Chartered Accountants (CICA) suggested general price level accounting in its accounting guidelines in 1974. Then in June 1975, Accounting Research Committee (ARC) directed that financial reports could be prepared in accordance with either general price level accounting or current value accounting, or both. In Brazil, working capital, fixed assets, and accumulated depreciations were subject to revaluation procedure in 1964. In Mexico, general price level accounting was recommended by a report published in September 1976 and adjustments were made with respect to consumer price index. In Israel, general price level accounting was implemented as a result of a report in May 1976. Finally, International Accounting Standards (IAS) 29 'Financial Reporting in Hyperinflationary Economies' was issued by International Accounting Standards Board (IASB) in July 1989, and reformatted in 1994. Effects of Inflation Accounting on Financial Ratios: An Empirical Analysis of Non-Financial Firms Listed on Istanbul Stock Exchange 49 A History of Inflation Accounting Practice in Turkey In general, the regulatory environment of Turkish accounting was affected, first by, French and German, then by the US accounting perspectives until the 1990s. Finally, European Union's view has become the major guideline in Turkish accounting practice. Nevertheless, the most comprehensive accounting regulation of the country is the \"General Circular for Implementing an Accounting System\