"Her daughter is cutting the paper."
Translation:Hennes dotter klipper i papperet.
We don't really need it here, but we very often use either a particle or a preposition with the verb klipper. It's much more idiomatic if you add something like that. The reason is that klipper in itself may be seen as a little imprecise.
klipper i (i is a preposition, unstressed) means a sort of random cutting, or at least doesn't say anyting specific about how you cut
klipper av (av is a particle, stressed) means 'cut off' – cutting until something is severed
There are more options too, but these are probably the most common ones.