A cut means that you define a cut between the source and the drain. That cut does not have to be a straight line, a curve, or any other shape is sufficient.
For example here I picked as blue cut such that the edges AB, AD and CD are passing the cut. Now if we look at the assigned flow of these edges, and we sum these up, we obtain 4+6+9=19.
An alternative cut is for example the one in green. Here we have edges BT, AD and AC that move "forward", and an edge DC that moves "backwards". So the sum of the flows is then 9+6+9-5=19. So regardless what cut we take, the sum is always 19 (of course we need to do the proper bookkeeping, and subtract flows in the opposite direction).
Of course you can pick any cut you want (for example a cut just after the source, or just before the drain), if the algorithm is done correctly, then the sum of all these cuts is always 19. This is logical, since if the flow of one cut would be more (or less) then 19, then the existence of a cut that "advances" one node that has a flow of 19, means that in that node, flow has disappeared, or appeared.
It however holds that if you would iterate over all possible cuts, then the minimum cut is the one where the sum of the capacities is maximized. So we can, strictly speaking, iterate over all possible cuts, and each time keep track of the sum of the capacities, and at the end, select the one with the smallest flow. A naive approach if simply iterating all cuts, would however result in an O(2n) algorithm, which is, compared to the Ford–Fulkerson algorithm, of course not desirable.