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Set up assets question.

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I just started looking at the set for the Dynamics 365 Field Services Trial and would like to get through the setup with one account before I move to a purchase or hire a consultant.  Already I have run into a very elementary question about data set up!  
 
As an example, say my company tests water supply wells at many locations, on many accounts.  Should we set up: Account, Functional Location, Assets=AccountNameWell1, AccountNameWell2 as two different 'assets', or Set up an asset named Water Supply Well and then add Existing Asset (water supply well) twice?  I'm not sure of the ramifications with each choice.  Also, if I have an Account that has two water supply wells (defined as Assets) and one has treatment components. Can I add, 'child assets' to the parent asset (water supply well 1)?