Green’s Dictionary of Slang

cut v.5

1. [mid-19C] to compete in business.

2. [late 19C+] to manage, to achieve; usu. as cut it v.3 (1)

3. [1930s+] (US black) to surpass, to outdo; thus cutting n.

4. [1960s] (US campus) to understand.

5. [1970s] to be convincing, to be as one wishes.

6. see cut a deal under deal n.1

In phrases

cut someone’s arse (v.) (also cut someone’s water off) [SE/sense 3 above + arse n. (1)]

1. [20C+] (W.I., Guyn.) to thrash severely, to flog; also fig. use.

2. [1970s] (US) to defeat, to surpass.