My puppy, Bunk, officially knows when he is being bad. As a general rule, we do not let Bunk into our room unless he is in his crate or we have him on our bed. Early today Bunk ran into the room after I left the door open and went right after my girlfriend's stuffed animals. The minute I walked into the room he jumped up and ran away. I could just tell by his behavior that he knew what he was doing was wrong.
I'm glad because it tells me that he understands consequences and respects boundaries. I feel like he is really progressing as a puppy, and as I write this, Bunk is sitting by my feet and has not had an accident in the hour since he ate dinner