http://www.komonews.com/home/video/18315669.html?t=a&video=pop
Listen to the boy's response. He clearly knew what he was doing was wrong, yet his understanding concerning punishment was very naive. Of course, he's just 7 years old, but even then, his conscience was aware of right and wrong.
Not to pick on the kid at all, but I see this with many adults when dealing with sin. They know what they do is wrong, but many don't really understand the gravity of their offense and therefore don't understand the punishment. They don't understand how it is that God would punish them for eternity.