yes, that's usually how it's done
unless you're after a 'frame' effect.
in that case, select the rectangle tool and make a square slightly bigger than your photo. put the layer behind the photo so you have a black (if your rectangle was black) border around the photo.
select the magic wand tool. click on the photo layer, and then click your magic wand anywhere outside the photo. you should have selected the space around it. now change layers (select the rectangle layer). right-click on the canvas and select 'invert selection'. now press the delete button on your keyboard.
if you hide the photo layer you will now see you are left with just a 'frame' of black. now apply a bevel and emboss style to the 'frame', and change the colour or pattern if you like. voila
