Final answer:
The ineffective cash management strategy is retaining excess cash for bank saving, as it represents an opportunity cost. Delaying payments, encouraging receivables collection, and keeping necessary assets are effective strategies. The correct option is A.
Step-by-step explanation:
The option that is not considered an effective cash management strategy is A. Retaining excess cash for bank saving. Options B, C, and D are considered effective strategies.
Option B, Delaying payment of liabilities until the last possible day, helps maintain better liquidity and can earn additional interest for the company. Option C, Encouraging collection of receivables by offering discounts for early payments, improves cash flow.
Option D, Keeping only necessary assets, ensures that there's no idle capital locked up in the business. Retaining too much excess cash could represent an opportunity cost because the funds could otherwise be invested to earn a higher return. The correct option is A.