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Helpful answers
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Jul 31, 2016 11:45 AM in response to Marshall Wahaby elcpu,See this article for the details of each type of backup, iCloud and iTunes
About backups for iOS devices - Apple Support
No, you cannot transfer purchased music from one account into another one.
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Jul 31, 2016 1:05 PM in response to Marshall Wahaby Macology,★HelpfulThere are two types of iPhone backups.
1) iCloud backups
2) Complete backups
iCloud backups can be divided into two categories
a) Critical data such as contacts, notes, reminders, and bookmarks that are immediately synced to a device when you restore from iCloud
b) Media content (apps, music, movies) that is stored to iTunes in the Cloud, and can be redownloaded by signing into iTunes and selecting the media you wish to recover.
Complete backups are the local backups you make via iTunes and store on your Mac or PC. Complete backups store everything found on the device in question, including critical data and media.
With all of that being said, if you are attempting to restore your iPhone based on your sister's account, then you would have to authorize your phone under her iTunes account. Understand that restoring from someone else's iTunes account will wipe your personal data from your device and replace it with the data from the iTunes account in question. So unless you already share an account with your sister, this is not advised. Create your own account instead so that you may have access to all of your data.
If all you want is to share music, then I recommend setting up Family Sharing for her iTunes account. Family Sharing will allow up to six people to access iTunes content purchased from a single account. I will link you to the Apple support article that details how to set up Family Sharing.
Set up Family Sharing - Apple Support
Best of luck to you.