There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Non-cumulative Preference Shares are the shares on which dividend if not paid in one year is not carried forward and paid in the subsequent years.
Reason (R):  Non-convertible Preference Shares are the shares that are not convertible into equity shares.

Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A).

Noncumulative preference shares are those shares that provide the shareholder a fixed dividend amount each year from the company’s net profit. Still, if the company fails to pay the dividend on such preference shares to the shareholder in any year, then such dividend cannot be claimed by the shareholder in the future.
Non-convertible preference share means the share will not be converted into equity shares but will be redeemed as preference share only. The shares that cannot be converted to equity are referred to as non-convertible shares.