Which of the following regarding current asset financing is correct?

A. In an ideal world, net working capital would be zero.

B. A flexible policy always implies a short-term cash surplus.

C. A restrictive policy uses short-term borrowing for permanent asset requirements.

D. In a compromise policy, short-term borrowing is used, at least partially, in place of maintaining a liquidity reserve.

E. Most firms do not have seasonal variations in total asset requirements and, as a result, do not need a current assets management policy.