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I see three issues in the list.
Can we cancel a fully matched PO: Yes. Cancellation is a notice to supplier to stop any further fulfillment. As long as there is something left to receive, the cancellation is allowed (even if the shipment is fully invoiced).
Q1: In my PR worklist, one line is from that PO. If i will return this line then the status will be returned.
I believe you are asking the following question. When one line of the PR is returned from the autocreate workbench, all the open lines are returned.
This is right. Because the return is at header level.
Q2: "Expenditure tables" - I am not sure which table you are referring to.