Cash Paid + Opening Expenditure Prepaid − Opening Expenditure Outstanding + Closing Expenditure Outstanding − Closing Expenditure Prepaid =?

its C because you are looking for the situation for incurred that's my answer

The correct option is c) Expenditure Incurred 

Cash paid and  difference of prepaid and outstanding expenditure would be the Expenditure Incurred.

 I think the correct answer from my point of view is  C

Expenditure Incurred is the right answer

Answer is Expenses incurred. Your question itself shows clearly that all are expenditure.

Expenditure incurred as these are expenses a company would have incurred during a stated period

This derives the expenditure incurred

Answer is Expenditure Incurred....