Final answer:
The accounting rule that a company follows when it records a probable loss in the future but not a probable gain in the future is called the conservatism principle.
Step-by-step explanation:
The accounting rule that a company follows when it records a probable loss in the future but not a probable gain in the future is called the conservatism principle.
The conservatism principle states that when faced with uncertainty, a company should err on the side of caution and recognize potential losses as soon as they are probable, but should only recognize potential gains when they are certain.
For example, if a company is involved in a lawsuit and it is probable that they will lose the case and incur a financial loss, they would record that loss in their financial statements. On the other hand, if the company is involved in a potential business opportunity that may lead to a gain, but it is uncertain whether it will materialize, they would not recognize the potential gain until it is certain.