Department of Economics, Finance, and Accounting
Professors: Colleen Fahy, Demetrius Kantarelis, Smriti Rao (Chairperson), Thomas White; Associate Professor: Brian Volz; Assistant Professors: Deanna Foster, Swayamsiddha Sarangi, Weixiao (Olivia) Wu; Professors of Practice: Kevin Peterssen, Kristen Quinn; Lecturers: Philip Benvenuti, Michael McKay.
Mission Statement
The Department of Economics, Finance, and Accounting offers programs which emphasize the development of critical intelligence and an appreciation for diverse, evidence-based perspectives in order to prepare students for a lifetime of engaged citizenship. Through exposure to the theoretical and empirical methods of these three disciplines, students develop a greater understanding of the complex world in which they live and are able to critically evaluate options available for improving that world. Upon graduation, our students are prepared for careers in a wide array of fields in the private sector (such as accounting, banking and other financial services, law, business administration, marketing, sales, journalism, consulting, or entrepreneurship) or the public sector (government or non-profit accountant/analyst/researcher, etc.). In addition, our graduates are prepared to succeed in graduate school in a variety of disciplines, including accounting, economics, finance, law, and business.
Programs of Study
Courses
ACC 125: FINANCIAL ACCOUNTING
Credits 3An introduction to accounting concepts for financial reporting. Accounting theories and principles relative to asset valuation, liability reporting, and income determination will be examined. The uses and limitations of external financial reports will be emphasized.
ACC 126: MANAGERIAL ACCOUNTING
Credits 3A consideration of some of the more complex areas of financial accounting and an introduction to managerial accounting and its role in the planning and control of business operations. Changes in financial position, analysis of financial statements, cost accounting, and budgeting will be examined. The impact of accounting information on internal decision making will be emphasized.
ACC 200: INTERMEDIATE ACCOUNTING I
Credits 3An intensive study of financial accounting and reporting problems. The class will discuss generally accepted accounting principles as applied to income determination, cash, receivables, investments, inventories, and productive resources. Emphasis is on the theory and practice of providing useful information to external financial statement users. The course will include coverage of the primary differences between U.S. GAAP and International Financial Reporting Standards (IFRS).
ACC 201: INTERMEDIATE ACCOUNTING II
Credits 3A continuation of ACC 200. Discussion focuses on debt and equity capital issues, leases, pensions, earnings per share, income taxes, and cash flow. The course will include coverage of the primary differences between U.S. GAAP and International Financial Reporting Standards (IFRS).
ACC 205: DATA ANALYTICS FOR ACCOUNTING
Credits 3This course will focus on developing the fundamentals of data analytics in the accounting profession while enhancing students’ facility with Excel. Students will learn how to analyze data to identify trends, detect anomalies, predict future performance and aid in strategic business decisions through practical applications to real-world accounting scenarios. The emphasis will be on learning how to use basic and intermediate level formulas in Excel, formatting, the preparation of charts and graphs, and managing data in Excel.
ACC 210: COST ACCOUNTING
Credits 3Deals with the processing, reporting, and use of accounting data for managerial decision making. Focuses on the use of cost accounting as a highly developed quantitative device for the selection and achievement of objectives. Emphasis on cost/volume/profit relationships, job-order costing, process costing, activity-based costing, standard costs, budgeting, capital budgeting, and performance evaluation.
ACC 211: ACCOUNTING INFORMATION SYSTEMS
Credits 3The overall objective of the course is to develop a framework for the analysis and design of accounting information systems. Based on this framework, the objective is then to show the student how to analyze accounting information systems that satisfy the transaction processing, reporting, decision making, and internal control requirements.
ACC 250: PERSONAL FINANCE
Credits 3This course will examine personal choices and the realization of an individual’s financial objectives. Creating an overall personal financial plan is the focus of the course. Money management, investment selection, consumer credit, housing, inflation, income taxes, transportation, insurance, retirement and estate planning are included in the discussion. Students will strive to develop a solid grounding in personal financial management principles. The department encourages enrollment of non-accounting and non-business majors.
ACC 260: COMMUNITY TAX ASSISTANCE (CEL)
Credits 3This course combines the study of low-income taxpayers with community service-learning. Students examine sociological issues, such as social class, in addition to researching individual tax credits targeted at low-income taxpayers. They will also become proficient with tax software. Students will apply their learning through the electronic preparation of tax returns for low-income Worcester residents.
ACC 310: FEDERAL INCOME TAXES
Credits 3The course will focus on the Federal Internal Revenue Code, its origins, organizations, principles, and application. The emphasis will be on the tax consequences of decisions made by both individuals and corporations. Specific practical problems will be used to illustrate the application of many of the basic principles of taxation. Consideration will be given to the historic, economic, and social causes and effects of tax law.
ACC 320: ADVANCED ACCOUNTING
Credits 3This course concentrates on advanced applications of financial accounting concepts not considered in depth in previous courses. Topics covered may include partnership organization, operation, and liquidation; business combinations; special financial reporting issues, governmental and non-profit accounting; Securities and Exchange Commission requirements; and financial reporting by multinational companies. The objective of the course is to expand and refine the problem-solving techniques introduced in ACC 200–201.
ACC 331: FRAUD EXAMINATION
Credits 3This course examines the subject of fraud from both management and accounting perspectives. Utilizing a variety of techniques including text, lecture, case studies, and occasional training videos, the course seeks to familiarize students with the conditions which facilitate fraud, the profile of the fraud perpetrator, common types of fraud, and methods of prevention, detection, and resolution. Numerous historical cases of fraud are examined.
ACC 332: FORENSIC ACCOUNTING
Credits 3This course serves as a follow-on to Fraud Examination, ACC/MGT 331, and builds upon the concepts learned in that course. The course covers the role of the forensic accountant including common types of engagements performed. It includes discussion of specific types of occupational and management fraud in depth with emphasis on detection techniques. There is coverage of the structure of forensic financial investigations, including those related to business frauds, business valuations, and matrimonial settlements. Cases from the text and other sources are used to illustrate key concepts.
ACC 385: INDEPENDENT STUDY IN ACCOUNTING
Credits 3Open to highly qualified junior and senior majors.
ACC 395: SPECIAL TOPICS IN ACCOUNTING
Credits 3This course permits the study of selected topics as designate by the instructor. Topics will change each time the course is offered.
ACC 399: ACCOUNTING INTERNSHIP
Credits 3The accounting internship course provides students with the opportunity to apply accounting coursework in a professional setting. Through supervised experience in an accounting organization, students will develop technical competencies, enhance professional skills, and reflect on real-world applications to deepen their understanding of the discipline.
ACC 420: AUDITING
Credits 3An examination of the theory and practice of auditing. Emphasis is on generally accepted auditing standards, professional liability of auditors, ethics of the accounting profession, the structure and conduct of the audit, and the preparation of the auditor’s report.
ECO 110: PRINCIPLES OF MICROECONOMICS
Credits 3An examination of the basic theory and performance of the household, business, and government in determining the nature of the output of the economy and its distribution among the members of the society. Policy issues considered may include public control of business, labor unions, agriculture, the environment, income distribution and poverty, and international trade.
ECO 111: PRINCIPLES OF MACROECONOMICS
Credits 3An analysis of the basic theory of aggregate economic activity and the application of the theory to current policy problems. Topics include national income accounting, the determinants of the level of income and employment, money and banking, fiscal and monetary policies, and economic growth and stability.
ECO 115: STATISTICS WITH EXCEL
Credits 4The purpose of this course is to develop an understanding of how statistical inferences are made in the face of uncertainty, using Excel as a tool. The underlying role of probability is stressed. A secondary purpose is the application of various test designs to formulate research questions. These designs include: t tests, analysis of variance, chi square analysis, and linear regression. An asynchronous, online laboratory component covers the basic tools of Microsoft Excel. Students will learn to create worksheets, enter and move data, format cells and worksheets, apply functions, write formulas, and create effective charts and graphs. MAT 114 must be taken prior to or at the same time as ECO 115.
ECO 130: ECONOMICS OF HEALTH, EDUCATION, AND INEQUALITY
Credits 3This course uses economic principles to frame public policy debate around contemporary issues related toeducation, healthcare, and inequality in the U.S. Topics include the pros and cons of school choice,competing theories on the returns to a college education, government involvement in health insurance,pharmaceutical pricing, the provision of a social safety net, and the debate over affirmative action. The course will include a combination of lectures and discussions and no previous experience with economics is required. (Alternate Years)
ECO 210: ECONOMICS OF WOMEN, MEN, AND WORK
Credits 3This course examines the work of women and men in the home and in the labor market. Economic decisions within the family are examined including the division of labor and the decision to engage in market work. Topics include: a historical perspective on women’s emergence in the workplace; comparative advantage within families; the effects of consumerism; and international comparisons. This is followed by an investigation into the underlying causes of the gender wage gap and the degree of poverty among women. The effects of government and business policies such as family leave, social security, affirmative action and social programs are discussed throughout.
ECO 212: ECONOMICS OF THE PUBLIC SECTOR
Credits 3Micro-economic and macro-economic theory is applied in an analysis of the role of the public sector in the United States economy. Following a consideration of the institutional arrangements that determine the magnitude of local, state, and federal taxes and expenditures, micro-theory is applied to the analysis of the impact of public finance on private sector behavior.
ECO 215: ECONOMETRICS I
Credits 3This course is about the construction of hypotheses and the specification of statistical methodology for testing those hypotheses. Students will learn estimation of parameters and inferential analysis, and how to apply these concepts to forecasting and policy. The course starts with the multiple linear regression model, after the properties of the ordinary least-squares estimator are studied in detail and a number of tests developed, it continues with specification, multicollinearity, autocorellation, heteroskedasticity, and dummy variables.
ECO 216: SPORTS DATA ANALYSIS
Credits 3The primary purpose of this course is to provide students with hands on experience analyzing large data sets from the sports industry. In addition to applying econometric analysis to sports data, students will also be introduced to measures of productivity and value currently being utilized within the sports industry. Students will use appropriate data analysis software to calculate traditional and emerging sports statistics and to analyze relationships between variables using regression analysis. Additionally, students will be introduced to data envelopment analysis as a measure of efficiency.
ECO 230: LAW AND ECONOMICS
Credits 3The objective of the course is to show how economic thinking may facilitate legal thinking in its attempt to “create” efficient legal rules. After an overview of micro-economics and legal institutions, the course turns to the economics of the principal areas of the common and criminal laws. More specifically, it deals with the existing economic theories of property, contracts, torts, crime, and their applications.
ECO 233: URBAN ECONOMICS
Credits 3The course introduces students to the major economic issues facing metropolitan areas. Topics that will be discussed include how and why cities are formed; urban housing markets and land-use patterns; the impact that local public finance and zoning decisions have on urban development; economic causes of the concentration of poverty in inner cities; and the causes and consequences of urban sprawl. (Alternate Years)
ECO 235: ENVIRONMENTAL ECONOMICS
Credits 3The course examines the relationship between the environment, markets, and business organizations. After an overview of the economics of the environment, it focuses on (among other topics) property rights; externalities; human population problems; the allocation of depletable, renewable, and other resources; cost-benefit analysis; regulation and taxation; and the trading of pollution rights.
ECO 250: SPECIAL TOPICS IN ECONOMICS
Credits 3Special topics in Economics are offered occasionally. These courses expand our current offerings and respond to changing student concerns, interests or more general worldwide topics of importance. These courses can be interdisciplinary in nature. They will be taught at the intermediate level. Some may require prerequisites or could be restrictive in some other manner.
ECO 252: ECONOMIC DEVELOPMENT
Credits 3Problems encountered by less developed countries. Theories of development are presented, followed by problems of capital accumulation; resource and population issues; strategies for agricultural and industrial development; government’s role; and relationships between developing and developed economies.
ECO 264: COMPARATIVE ECONOMIC SYSTEMS
Credits 3This course is an in-depth, comparative study of the rising economic powers of Asia and/or Central and Eastern Europe. Countries selected for study may include, among others, China, India, Russia and Poland. It examines such areas as transfer of firm ownership from the state to private investors, removal of price controls, macroeconomic stabilization, and the international economic relations of these countries, particularly their relationship with and impact upon the United States economy.
ECO 310: MICROECONOMIC THEORY
Credits 3The primary purpose of this course is to develop the ability to analyze the economic behavior of individuals, businesses, and government, in the light of economic principles. Topics include consumer theory, production and costs, various market structures and related models, and welfare considerations. Should be taken before senior year.
ECO 311: MACROECONOMIC THEORY
Credits 3The modern theory of aggregate economic behavior is considered through development of comparative static models that include the principal aggregate variables associated with determination of output, employment and prices. The problems of economic growth are introduced by using a limited number of the basic dynamic models. Should be taken before senior year.
ECO 323: LABOR ECONOMICS
Credits 3This course applies economic theory to labor market issues. It makes use of the analytical tools of micro- and macro-economics in an examination of productivity, pricing, and allocation of labor resources. Public policy issues are covered including discrimination, manpower development, income maintenance programs, collective bargaining, and unemployment.
ECO 329: MONETARY AND FINANCIAL INSTITUTIONS
Credits 3A study of the role of money and monetary institutions in the economy. A parallel development of the monetary theory and institutions that determine public monetary policy and its influence on domestic and international economic activity.
ECO 331: MARKETS AND MARKET POWER
Credits 3The course is concerned with the organization of industries in a market environment. It focuses on the market structure, conduct, and performance of industries in the USA. In addition, attention is given to antitrust policy regarding price-fixing agreements, control of market structures, and restrictions on conduct.
ECO 340: THE ECONOMICS OF SPORTS
Credits 3This course applies economic modeling to a number of issues surrounding professional and University sports in the United States. Market structure and game theory will be used to analyze the decision making process for the owners of professional sports teams. Public financing issues are addressed in the context of the funding of stadiums and arenas. A number of labor market topics will be examined including monopsony, labor unions and the economics of discrimination. Finally, collusion, game theory and human capital investment are examined in the context of University sports.
ECO 353: INTERNATIONAL TRADE
Credits 3An examination of the theory of international trade and policies followed by governments with respect to trade of goods and services among countries. Theory examines the gains from trade under classical and modern assumptions, and the impact of various measures used by governments to either restrict or promote trade. Policy analysis focuses on U.S. trade policies and the role of the World Trade Organization. Current topics include trade and the environment, NAFTA, U.S.-China trade, and others as appropriate.
ECO 354: INTERNATIONAL FINANCE
Credits 3This course covers open economy macroeconomics. Topics include: balance of payments accounting, exchange rate determination, monetary and fiscal policy, and macroeconomic modeling. After examining standard theories and models, the course will explore case studies from recent history in numerous countries. The case studies will focus on: debt and balance of payments crises, speculative currency attacks, European monetary union, International Monetary Fund policy, and the value of the U.S. dollar. Students will engage in research projects.
ECO 399: INDEPENDENT STUDY IN ECONOMICS
Credits 3Individually supervised study with one or more professors on an advanced topic. Open to qualified juniors and seniors with the permission of the Chair.
ECO 499: RESEARCH SEMINAR
Credits 3Required of all Economics majors in their final semester. Course theme is chosen by the instructor. Research projects will be planned and carried out by students under faculty guidance. Seminar meetings provide the opportunity for discussions of students’ research and what it means to be an economist in today’s world. Useful for seniors in other social sciences and business studies.
FIN 325: FINANCIAL MANAGEMENT I
Credits 3Introduction to the principles and techniques utilized in the financial management of business. Topics to be covered include interpretation of financial statements, time value of money, stock and bond valuation, ratio analysis, risk and return, capital budgeting, cost of capital, leverage, and capital structure.
FIN 326: FINANCIAL MANAGEMENT II
Credits 3A continuation of FIN 325 with a focus on both long-term and short-term financial planning and management. Topics will include cost of capital, financial leverage, capital structure, dividend policy, working capital management, and international corporate finance.
FIN 330: FINANCIAL MODELLING
Credits 3In this course students develop the ability to construct financial models in order to answer complex financial questions. Students will learn how to access financial data and how to use that data to complete analyses using a variety of tools. Microsoft Excel will be utilized to format data, perform numerical analysis, and generate graphical presentations of data. Financial topics that will be addressed include discounted cash-flow analysis, capital budgeting, the cost of capital, risk, and financial planning and forecasting.
FIN 357: INVESTMENT THEORY
Credits 3An examination of investment decision making using economic analysis. Topics include types of investments; investment objectives; investment return and risk; security analysis; portfolio theory; the efficient market hypothesis; fundamental analysis; technical analysis; the capital asset pricing model; and other topics to be chosen by the instructor.
FIN 358: INVESTMENTS AND SECURITY VALUATION
Credits 3This course examines the various techniques used by investment professionals to value debt and equity securities of public and private companies. Stock valuation methods that will be covered include the dividend discount model, the price-earnings ratio, and financial statement analysis. Bond valuation will focus on pricing, risk, and portfolio management. Measuring the value of derivative securities such as options and futures will also be discussed.
FIN 410: CASES IN FINANCIAL MANAGEMENT
Credits 3This course focuses on financial concepts, tools and techniques and their impact on the firm through an examination of case studies. Students utilize material from previous finance courses to assess options and offer recommendations for a variety of realistic case-based problems involving financial decision-making. Topics covered include ethical decision making in finance, financial analysis, forecasting, estimating cost of capital, capital budgeting and resource allocation, management of the firm's equity through dividends and share repurchases, assessment of corporate capital structure, and working capital management. Emphasis is on identifying problems, developing solutions, and presenting cases in an effective and professional manner.
FIN 420: APPLIED SECURITY AND PORTFOLIO ANALYISIS
Credits 3The course builds on the knowledge gained from the core course FIN 358: Investment and Securities Valuation. It will help students develop a broad knowledge and understanding of issues relevant to portfolio management practice. Through the combination of theory and practical cases, students will learn Investment Policy Statement for individual and institution investors, process and strategies of portfolio optimization, portfolio performance evaluation, and portfolio rebalancing.
FIN 430: FINANCIAL ECONOMETRICS
Credits 3The course is about analyzing prices of financial assets traded in competitive markets through econometric methods; it utilizes concepts from microeconomics, finance, mathematical optimization, data analysis, probability models and statistical analysis. After an overview of multiple regression, dummy variables and panel data, the course focuses on methodologies in modeling and testing time series data (analysis of data sets that change over a time period): Cointegration, Autoregressive Integrated Moving Average (ARIMA) models, Generalized Autoregressive Conditional Heteroskedasticity (GARCH), Granger Causality, Event Study, and Monte Carlo analysis. The last portion of the course is spent on studying classic applications found in literature and on applied work undertaken by students on various topics of their choice. Familiarity with econometric software will be essential as assignments will have to be carried out using standard packages such as Excel and STATA.