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

When creating a new Java project in IntelliJ IDEA, the following directories and files are created:

./projectname.iml
./projectname.ipr
./projectname.iws
./src/

I want to configure IntelliJ IDEA to include my dependency JARs in ./lib/*.jar to the project.

What is the correct way to achieve this in IntelliJ IDEA?

Steps for adding external jars in IntelliJ IDEA:

• Click File from the toolbar

• Select Project Structure option (CTRL + SHIFT + ALT + S on Windows/Linux, ⌘ + ; on Mac OS X)

• Select Modules at the left panel

• Select Dependencies tab

• Select + icon

• Select 1 JARs or directories option

Stack Overflow Q#1051640, score: 1643