Same app download, use on two iphones?

I have a macbook pro. I have an iPhone and my wife has an iPhone. Each of us has a separate user account on the MBP.
If I download a paid app from the AppStore, am I allowed to use it on both iPhones? I know the ITMS lets you authorize bought tunes on five machines. Is this principle in place with apps?
If I log into her account, then log into my ITMS account and re-download the app in question, will it install on her iPhone?
I have searched the list, but have had no luck with an answer.
Thanks,
Roger

Hm.. you can connect the other iPhone of yours to the same computer. Wait for a pop-up from iTunes; stating such as if you wish to register and accept this device as a trusted one. Click accept and you should be able to go about with it, if I'm not mistaken.

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