Correct way to add external jars (lib/*.jar) to an IntelliJ IDEA project

Steps for adding external jars in IntelliJ IDEA:

1. Click File from the toolbar
2. Select Project Structure option (CTRL + SHIFT + ALT + S on Windows/Linux, ⌘ + ; on Mac OS X)
3. Select Modules at the left panel
4. Select Dependencies tab
5. Select + icon
6. Select 1 JARs or directories option