The cut command is used to extract sections from each line of a file or input stream. The -d option specifies the delimiter that separates the fields in each line. The -f option specifies the fields to select. In this case, the delimiter is a colon (:) and the fields are 1 and 7. The first field is the user name and the seventh field is the login shell. Therefore, the cut command with these options will generate a list of user names and their login shells from /etc/passwd. References:
* Linux cut Command Explained with 6 Examples
* How to Use the Linux cut Command
* cut command in Linux with examples